Abstract
The important feature of the development of Karachi Stock Market over the last 10 years has been the growing participation of institutional investors. This paper is focusing on the importance of institutional investors in stock market, specially their entrance in stock exchange. In this paper we investigate the news of emergence of institutional investors incorporated in stock markets. Using stock index data from the Karachi stock exchange from Jan 2000 to Dec 2010, for this purpose we apply event study we find evidence that the information related to the emergence of institutional investors in stock exchange do actually incorporated in stock exchange.
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